ADA → Cardano Failed to Break Resistance Zone. About to Fall!?

Cardano had a failed breakout above the Resistance Zone at $0.62, followed by several failed attempts to break it again. Does this mean we enter a long?

How do we trade this? 🤔
Entering a short right now is reasonable if you accept the low probability nature of reversal trading. The number of failures to break the resistance zone are great signals to enter a trade, but additional confirmation to the downside with a strong bear candle is preferable. Due to the current distance to the proper stop loss placement above the Resistance Zone, it's reasonable to take a 1:1 Risk/Reward Ratio trade down to the support zone. Use a smaller position size given the additional risk.


💡 Trade Ideas 💡

Short Entry: $0.575
🟥 Stop Loss: $0.665
✅ Take Profit: $0.485
⚖️ Risk/Reward Ratio: 1:1


🔑 Key Takeaways 🔑

1. Failed Breakout at Resistance Zone, Sell Signal.
2. Failed three times to break Resistance Zone after Signal, Confirmation.
3. Gap to Daily 30EMA and Support Zone.
4. RSI at 60.00, Below Moving Average. Bias to Short.
5. Watch for Bitcoin Trend Change at $46,000.


💰 Trading Tip 💰
Price seeks balance and will naturally move toward moving averages. Trade with the trend for maximum probability, but also expect gaps between the price and moving averages to close before they widen.


⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!


Like 👍 and comment if you found this analysis useful!